The High Court yesterday declared that Securities Commission Malaysia (SC) had successfully proven an insider trading case against Lim Chiew, a former independent director of Magnum Corporation Bhd.
In the suit which was filed in 2005, SC claimed that Lim Chiew had breached section 89E (2) of the Securities Industry Act 1983 when he acquired 590,000 Bolton shares on 12 July 1999 while in possession of material non-public information.
In its decision, the Court agreed with SC that Lim Chiew was in possession of information relating to Bolton’s proposed acquisition of a 30.3% stake in Magnum Corporation from Multi-Purpose Holdings Bhd when he made the purchase. The announcement relating to Bolton’s acquisition was subsequently made through the-then Kuala Lumpur Stock Exchange.
Justice Datin Hajah Azizah Haji Nawawi ordered Lim Chiew to pay a sum of RM1,242,061.08, which amounted to three times the profits he earned as a result of the insider trading. In addition, the High Court ordered Lim to pay the SC a civil penalty of RM50,000 and RM75,000 in costs.